2017 state of employee engagement...2017 state of employee engagement a comprehensive look at...
TRANSCRIPT
2017 State of Employee Engagement
A comprehensive look at employee engagement practices from more than 150 companies around the world.
©2017 DecisionWise, LLC www.Decision-Wise.com
©2017 DecisionWise, LLC www.Decision-Wise.com 2
Employee engagement continues to be a top concern for executives around the world. We conducted this study to understand why engagement is important to companies and what they are doing to improve the level of engagement of their workforce.
In the 2017 State of Employee Engagement report, we take a detailed look at:• The importance of employee engagement• How organizations are measuring employee engagement• What is working to improve employee engagement• A view of how employee engagement is trending from 2016 to 2017
The survey measured:• Importance of employee engagement• Perceived outcomes of engagement• How engagement is measured• Engagement levels in organizations
The State of Employee Engagement
©2017 DecisionWise, LLC www.Decision-Wise.com 3
Key Findings from this ResearchThis study provides several insights and actionable take-aways for HR professionals:
1. Engagement Drives Retention: Companies concerned about employee retention show greater success at improving employee engagement. Tie your engagement initiatives to specific business outcomes.
2. Implement Engagement Programs: Companies that have formal employee engagement programs are more successful at increasing employee engagement.
3. Consistently measure employee engagement. Most companies with rising levels of employee engagement have measured it at least every year for the past three years or more. Commit to measuring employee engagement
4. Use Benchmarks: Many companies that have increasing levels of engagement compare engagement survey scores to industry benchmarks. Benchmarks provide context to the results and help guide action planning efforts.
Who Took Our SurveyWe received 157 responses from around the world from companies of all sizes. Most of the respondents are professionals in Human Resources who work as managers and above.
©2017 DecisionWise, LLC www.Decision-Wise.com 5
Title Page
Leadership Intelligence®
4%
21%
8%
6%
5%10%
6%
40%
2016 Revenue
Less than $1 million
$1 million - $24 million
$25 million - $99 million
$100 million - $499 million
$500 million - $999 million
$1 billion - $4.99 billion
$5 billion+
Don't Know
24%
22%
14%
21%
5%
14%
Number of Employees
1-99
100-499
500-999
1,000-4,999
5,000-9,999
10,000+
Over 150 organizations represented (20+ Industries).
Company Size
©2017 DecisionWise, LLC www.Decision-Wise.com 6
Leadership Intelligence®
Department and TitleMost respondents are HR managers and above.
66%
9%
16%
Department
Human Resources OperationsOther Sales/Business DevelopmentCustomer Service IT Marketing/Public Relations Finance/Procurement
22%
33%16%
6%
13%
4%Job Title
Individual Contributor ManagerDirector Senior ManagerOther Vice PresidentSenior Vice President C-level Executive
Perceptions of Employee EngagementThis section measured people’s understanding of the term “employee engagement,” its importance, and perceived benefits to the organization.
©2017 DecisionWise, LLC www.Decision-Wise.com 8
63%
25%
10%
2%
61%
23%
15%
1%
0%
10%
20%
30%
40%
50%
60%
70%
Very Familiar Familiar Somewhat Familiar Not at all Familiar2016 2017
How familiar are you with the term “Employee Engagement?”
Understanding of Employee Engagement
84% of respondents are either very familiar or familiar with employee engagement compared with 88% in 2016.
Tweet this
n=148
©2017 DecisionWise, LLC www.Decision-Wise.com 9
Leadership Intelligence®
Importance of Employee Engagement, Executive TeamBased on what they both say and do, how important is Employee Engagement to the executive team of your organization?
45%
27%
21%
5%2%
51%
22%20%
6%
2%
0%
10%
20%
30%
40%
50%
60%
Very Important Important Somewhat Important Not at all Important Don't Know
2016 2017
73% of respondents say their executive team feels employee engagement is either very important or important compared with 72% in 2016. Tweet this
n=148
©2017 DecisionWise, LLC www.Decision-Wise.com 10
Leadership Intelligence®
Importance of Employee Engagement, ManagersHow important is Employee Engagement to managers in your organization?
29%
35%
28%
5%3%
39%
27% 26%
5%3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Very Important Important Somewhat Important Not at all Important Don’t Know
2016 2017
Respondents report that employee engagement is very important to more managers in 2017 compared to 2016. Tweet this
n=148
©2017 DecisionWise, LLC www.Decision-Wise.com 11
Leadership Intelligence®
Benefits of Employee EngagementIn your opinion, in what ways does Employee Engagement benefit organizations in general?
Benefit Rank 2016 Rank 2017
Increases employee performance 1 1
Increases employee retention 2 2
Increases quality 4 3
Increases customer satisfaction 3 4
Attracts talent to the company 7 5
Increases profitability 5 6
Improves company/brand image 8 7
Increases innovation 6 8
Decreases employee absence 9 9
HR professionals name Increased Performance and Retention as the most important benefits of employee engagement for the past two years. Tweet this
Employee Engagement ProgramsWhat are organizations doing to improve employee engagement? We asked about programs and initiatives that are being used to increase employee engagement, their effectiveness, future plans, partnering with external providers, and expenditures.
©2017 DecisionWise, LLC www.Decision-Wise.com 13
Leadership Intelligence®
Use of Formal Employee Engagement ProgramsDoes your organization have a formal program (or programs) currently in place specifically aimed at enhancing Employee Engagement?
55%
40%
5%
52%
41%
7%
0%
10%
20%
30%
40%
50%
60%
Yes No Don't Know
2016 2017
About 40% of companies still do not have formal programs in place to enhance employee engagement.
Tweet this
n=148
©2017 DecisionWise, LLC www.Decision-Wise.com 14
17%15%
21%
16% 16%
24%
5%2%
65%
21%
12%9%
15%
26%
0%3%
0%
10%
20%
30%
40%
50%
60%
70%
Lack ofKnowledge about
EE
Lack offunds/resources
Lack of Supportfrom Senior
Executive Team
Lack of Supportfrom Managers
Lack of Follow-Through
Other CompetingPriorities
EE Doesn’t Matter
Don't Know
Reasons for Not Having an Employee Engagement ProgramWhy does your organization not have any programs in place to enhance Employee Engagement? (check all that apply)
In 2017, a lack of knowledge of the benefits of employee engagement is the most common reason why companies don’t have programs to enhance employee engagement. Tweet this
2017 n=34
©2017 DecisionWise, LLC www.Decision-Wise.com 15
Top Employee Engagement InitiativesWhat types of Employee Engagement-specific initiatives has your organization implemented in the past three years? Please mark all that apply.
65%
33%
36%
55%
59%
65%
25%
21%
8%
2%
3%
84%
12%
21%
31%
33%
32%
13%
11%
6%
1%
1%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Employee Feedback Systems
Training on Employee Engagement
Other Types of Training
Wellness Programs
Recognition Programs
Company Events/Parties
Telecommuting/Work from home
Additional Perks/Benefits
Other (Please Specify)
Don't know
None
2016 2017
Receiving feedback from employees remains to be the most used initiative to address Employee Engagement. Others have declined in 2017. Tweet this
n=113
©2017 DecisionWise, LLC www.Decision-Wise.com 16
Title Page
Success of Employee Engagement ProgramsOverall, how successful do you feel these programs have been over the past three years in increasing Employee Engagement?
9%
24%
50%
14%
3%
12%
26%
48%
11%
4%
0%
10%
20%
30%
40%
50%
60%
Very Successful Successful SomewhatSuccessful
Not Successful Don't Know
2016 2017
38% of companies report that their Employee Engagement programs are successful or very successful compared to 33% in 2016.
Tweet this
n=133
©2017 DecisionWise, LLC www.Decision-Wise.com 17
2%
15%
4%
5%
5%
16%
18%
18%
13%
11%
70%
0% 10% 20% 30% 40% 50% 60% 70% 80%
None
Don't know
Other (Please Specify)
Additional Perks/Benefits
Telecommuting/Work from home
Company Events/Parties
Recognition Programs
Wellness Programs
Other Types of Training
Training on Employee Engagement
Employee Feedback Systems
Future Employee Engagement PlansWhat types of Employee Engagement initiatives does your organization plan on implementing in the future? Please mark all that apply.
Most companies report that they will use employee feedback systems to address Employee Engagement in 2017.
Tweet this
n=100
©2017 DecisionWise, LLC www.Decision-Wise.com 18
Working with External Providers on Employee EngagementDo you work with outside providers to enhance Employee Engagement? Outside providers may include training companies, consultants, coaches, universities, survey companies, etc. (but not do-it-yourself software tools).
34%
52%
14%
39%
50%
11%
0%
10%
20%
30%
40%
50%
60%
Yes No Don't Know
2016 2017
39% of companies report using an outside provider to enhance employee engagement compared to 34% in 2016.
Tweet this
n=133
Measuring Employee EngagementWe got down into the details to find out the frequency and consistency of surveying, survey methods, participation rates, use of benchmarks, and the average level of engagement.
©2017 DecisionWise, LLC www.Decision-Wise.com 20
Last Employee Engagement SurveyWhen was the most recent survey conducted to measure Employee Engagement in your organization? Was it in the past…
49%
12%
6%
20%
13%
53%
15%
7%
14%11%
0%
10%
20%
30%
40%
50%
60%
Year 2 Years 3 Years or more Never (Will NotMeasure)
Don't Know
2016 2017
53% of companies report measuring employee engagement at least once a year compared to 49% in 2016. Tweet this
n=148
©2017 DecisionWise, LLC www.Decision-Wise.com 21
History of Measuring Employee EngagementOver how many years has your organization been measuring Employee Engagement using an employee survey?
14%
10%
13%
8%
39%
16%15%
10% 9% 8%
47%
10%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1 Year 2 Years 3 Years 4 Years 5 Years or more Don't Know
2016 2017
64% of companies report measuring employee engagement for 3 years or more compared to 60% in 2016. Tweet this
n=108
©2017 DecisionWise, LLC www.Decision-Wise.com 22
Frequency of Measuring Employee EngagementHow frequently does your organization conduct a formal employee survey or collect employee feedback? (Multiple answers allowed if your company surveys multiple times)
3%1%
3%6%
52%
4%
16%13%
2%
11%
0% 0%
8%
49%
3%
19%
8%
3%
0%
10%
20%
30%
40%
50%
60%
Always On Weekly Monthly Quarterly Annually Every 18months
Every 2 years More thanevery 2 years
Don't Know
2016 2017
Most companies measure engagement annually.
Tweet this
n=49
©2017 DecisionWise, LLC www.Decision-Wise.com 23
Consistency of Measuring Employee EngagementWhich statement best describes your organization?
CONSISTENT: My organization has measured employee engagement each year for at least the past three years.
JUST STARTED: My organization just started measuring employee engagement within the last two years.
LESS CONSISTENT: My organization measures employee engagement every 18 months to 2 years.
SPORADIC: My organization has measured employee engagement sporadically over the past five years.
41%
24%
14%
17%
4%
45%
16%
18%
14%
7%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Consistent
Just Started
Less Consistent
Sporadic
Don't Know
2016 2017 n=44
©2017 DecisionWise, LLC www.Decision-Wise.com 24
Internal vs. Outsourced Employee Engagement SurveysFor your organization's most recent survey to measure employee engagement, how did you administer the survey?
25%
62%
8%5%
15%
69%
13%
2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Internally using softwaretool
Outsourced to a third-partysurvey company
Other (Please Specify) Don’t Know
2016 2017
More companies reported using outsourced third-parties than internal software tools to administer employee engagement surveys in 2017.
Tweet this
n=84
©2017 DecisionWise, LLC www.Decision-Wise.com 25
46%
19%
1%
18%
15%
1%
0%
68%
10%
1%
11%
7%
1%
1%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Online Survey
Paper Survey
Telephone Survey
Focus Groups
Personal Interviews
Other
Don't Know
2016 2017
Employee Feedback Collection MethodsWhat methods has your organization used to collect employee feedback? (Mark all that apply)
The reported use of online employee engagement surveys increased from 46% in 2016 to 68% in 2017.
Tweet this
n=102
©2017 DecisionWise, LLC www.Decision-Wise.com 26
Average Employee Engagement Survey ParticipationWhat percentage of your employees provided feedback to your most recent employee survey?
36%
21%
18%
24%
2017
90+%
80-89%
70-79%
less than70%
75%
77%
60%
62%
64%
66%
68%
70%
72%
74%
76%
78%
2016 2017
Averages, 2016 to 2017
More than a third of companies report 90+% participation on their last employee engagement survey. Tweet this
n=66
©2017 DecisionWise, LLC www.Decision-Wise.com 27
Use of Employee Engagement BenchmarksDo you compare your engagement scores to an overall benchmark or to others in your industry? (benchmarking)
52%
34%
14%
52%
30%
18%
0%
10%
20%
30%
40%
50%
60%
Yes No Don't Know
2016 2017
52% of companies report using industry benchmarks to compare engagement survey results.
Tweet this
n=107
©2017 DecisionWise, LLC www.Decision-Wise.com 28
Average Level of Employee EngagementAccording to your most recent survey results, what percentage of employees are engaged at your company? This includes employees you consider to be fully engaged, engaged, or somewhat engaged.
10%
24%
29%
38%
2017
90+%
80-89%
70-79%
less than 70%
66%
68%
50%
52%
54%
56%
58%
60%
62%
64%
66%
68%
70%
2016 2017
AveragesCompanies report higher levels of employee engagement in 2017: 68% vs. 66% in 2016.
Tweet this
n=43
©2017 DecisionWise, LLC www.Decision-Wise.com 29
Companies with Engagement Trending UpwardBased on any employee survey results over the past 3 years, has the overall level of Employee Engagement in your organization trended….
31%28%
17%
28%
48%
15%
19% 18%
0%
10%
20%
30%
40%
50%
60%
Upwards Downwards Same Don't Know
2016 2017
48% of companies report Employee Engagement is trending upwards compared to 31% in 2016.
Tweet this
n=106
Use of Employee Engagement ResultsConducting a survey is just the beginning of a process. This section highlights what happens after the results are tallied. We asked about how broadly results are shared, who conducts action plans using the results, and if training is provided on employee engagement.
©2017 DecisionWise, LLC www.Decision-Wise.com 31
Sharing of Employee Engagement ResultsWhich groups receive the results of the survey (summary or detailed results)? Please check all that apply.
82%
79%
58%
20%
56%
7%
3%
91%
41%
28%
9%
22%
4%
4%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
HR
Executive team
All managers
Some Managers
All Employees
Some employees
Don't know
2016 2017
Companies report that there is less sharing of employee engagement survey results throughout the organization compared to the previous year.
Tweet this
n=84
©2017 DecisionWise, LLC www.Decision-Wise.com 32
Creation of Employee Engagement Survey Action PlansWho is involved in action planning based on the survey results?
55%
59%
26%25%
15%
4%2%
85%
32%
18%
12% 12%
0% 1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Executive Team HR Team All Managers Some Managers All Employees Other No Action Plans
2016
2017
Companies report that the executive team is more involved in action planning in 2017 compared to the previous year: 85% vs. 55% participation.
Tweet this
n=82
©2017 DecisionWise, LLC www.Decision-Wise.com 33
Creation of Employee Engagement Survey Action PlansWhat percent of the following groups actually create an action plan? (Employees were not included in the 2016 survey)
72%68%
55%
75%78%
50%
35%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Executive Team HR Team Managers Employees (non-managers)
2016
2017
Managers and employees are less involved in the creation of engagement survey action plans compared to the Executive and HR teams. Tweet this
n=47
©2017 DecisionWise, LLC www.Decision-Wise.com 34
Training on Employee EngagementWhich of the following groups have received training on Employee Engagement in your organization? By training, we mean a formal session on what employee engagement is and how to increase it in the organization. Please check all that apply.
17%
20%
12%
9%
4%
7%
22%
9%
41%
15%13%
6%
2%
6%
13%
4%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
ExecutiveTeam
HR Team AllManagers
SomeManagers
AllEmployees
SomeEmployees
We don'ttrain
Don't know
2016 2017
More executive teams received training on employee engagement in 2017 compared to 2016: 41% vs. 17%
Tweet this
n=66
ROI and Employee EngagementDoes employee engagement really work? We asked about the return on investment from employee engagement initiatives and other impacts it has on the organization.
©2017 DecisionWise, LLC www.Decision-Wise.com 36
Measuring the ROI of Employee EngagementDoes your organization measure its return on investment (ROI) for Employee Engagement programs?
9%
68%
23%
11%
58%
31%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Yes No Don't Know
2016 2017
Only about 10% of companies measure the return on investment for employee engagement programs. Tweet this
n=133
©2017 DecisionWise, LLC www.Decision-Wise.com 37
What ROI have you seen?In what ways have you seen a return on the organization’s investment in Employee Engagement?
Higher retention tops the list as the most reported return on investment from employee engagement initiatives.
Tweet this
n=7020%
3%
1%
18%
18%
23%
11%
21%
21%
28%
11%
58%
0% 10% 20% 30% 40% 50% 60% 70%
Don't Know
None
Other
Decreased Employee absence
Increased Innovation within the company
Increased Customer Satisfaction
Increased Profitability
Improved product/service quality
Improve Company/Brand Image
Higher Performance
Higher application Rates for Job Openings?
Higher Employee Retention
©2017 DecisionWise, LLC www.Decision-Wise.com 38
Belief in Employee Engagement ROIHow strongly do you agree with the following statement: “Our program(s) to improve Employee Engagement has (have) given us the ROI/results we hoped for.”
3%
24%
20%
9%
6%
38%
3%
25%
30%
3%
4%
35%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Strongly Agree
Agree
Neither Agree/Disagree
Disagree
Strongly Disagree
Don't Know
2016 2017
Only about a quarter of all companies agree that engagement programs give the results hoped for. Most still are unsure.
Tweet this
n=132
©2017 DecisionWise, LLC www.Decision-Wise.com 39
Comments about the Impact of Employee Engagement How would you describe the impact of Employee Engagement on your organization overall?
“Positive”“Huge impact”
“Getting better but can always be improved”
“Lacks metric”
“We need to do more”
“It is a relatively new concept”
Most companies reported that engagement has a positive impact. Some responded that engagement is hard to measure.
Tweet this
Best PracticesWe take a look at trends of companies that have upward trending employee engagement, and how they differ from others.
©2017 DecisionWise, LLC www.Decision-Wise.com 41
Companies with Engagement Trending Upwards…Based on any employee survey results over the past 3 years, has the overall level of Employee Engagement in your organization trended….
48%
15%
19% 18%
0%
10%
20%
30%
40%
50%
60%
Upwards Downwards Same Don't Know
Upwards Downwards Same Don't Know
Let’s take a more detailed look at the specific practices of companies with upwards trending employee engagement.
n=106
©2017 DecisionWise, LLC www.Decision-Wise.com 42
How concerned is your organization about employee retention?
Use employee retention as a motivation to improve employee engagement.
Tweet this
47%49%
4%
39%
50%
11%
0%
10%
20%
30%
40%
50%
60%
Very Concerned Somewhat Concerned Not Concerned
Upwards Downwards/Stagnant
Companies with Engagement Trending Upwards…Are Concerned about Employee Retention.
©2017 DecisionWise, LLC www.Decision-Wise.com 43
Does your organization have a formal program (or programs) currently in place specifically aimed at enhancing Employee Engagement?
78%
16%
6%
58%
42%
0%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Have programs No programs Don't know
Upwards Downwards/Stagnant
78% of companies with increasing trends in engagement use programs to enhance it.
Tweet this
Companies with Engagement Trending Upwards…Use of Programs to Enhance Engagement.
©2017 DecisionWise, LLC www.Decision-Wise.com 44
Do you compare your engagement scores to an overall benchmark or to others in your industry? (benchmarking)
Companies that compare engagement survey scores to industry benchmarks show slightly more success at increasing employee engagement.
Tweet this
60%
28%
12%
53%
25%22%
0%
10%
20%
30%
40%
50%
60%
70%
Yes No Don't know
Upwards Downwards/Stagnant
Companies with Engagement Trending Upwards…Use Industry Benchmark Comparisons.
©2017 DecisionWise, LLC www.Decision-Wise.com 45
How consistently do you measure employee engagement?
Of companies that measure employee engagement consistently, 59% report engagement trending upwards!
Tweet this
59%
9%
18%14%
36% 36%
7%
21%
0%
10%
20%
30%
40%
50%
60%
70%
Consistent Less Consistent Sporadic Just Started
Upwards Downwards/Stagnant
Companies with Engagement Trending Upwards…Consistently Measure Employee Engagement.
CONSISTENT: My organization has measured employee engagement each year for at least the past three years.
JUST STARTED: My organization just started measuring employee engagement within the last two years.
LESS CONSISTENT: My organization measures employee engagement every 18 months to 2 years.
SPORADIC: My organization has measured employee engagement sporadically over the past five years.
Key FindingsA summary of the report along with some key take-aways.
©2017 DecisionWise, LLC www.Decision-Wise.com 47
Key Findings from this ResearchThis study provides several insights and actionable take-aways for HR professionals:
1. Engagement Drives Retention: Companies concerned about employee retention show greater success at improving employee engagement. Tie your engagement initiatives to specific business outcomes.
2. Implement Engagement Programs: Companies that have formal employee engagement programs are more successful at increasing employee engagement.
3. Consistently measure employee engagement. Most companies with rising levels of employee engagement have measured it at least every year for the past three years or more. Commit to measuring employee engagement.
4. Use Benchmarks: Many companies that have increasing levels of engagement compare engagement survey scores to industry benchmarks. Benchmarks provide context to the results and help guide action planning efforts.
©2017 DecisionWise, LLC www.Decision-Wise.com 48
About DecisionWise
We start by understanding your organization and what you need to measure. What is the current culture? What's most important to your organization right now, and in the future?
We understand what matters most to your success. Our survey experts customize an employee engagement survey based on those needs, and confidentially collect feedback from your employees.
We partner with you to analyze and interpret the results. But it doesn't end there. Our comprehensive action planning process helps ensure that employee survey data is turned into action and results.
https://www.decision-wise.com/employee-engagement-survey/
What we do:
©2017 DecisionWise, LLC www.Decision-Wise.com 49
Employees and leaders intuitively know that when we find a place where we can throw our hearts, spirits, minds, and hands into our work, we are happier, healthier, and produce better results. Yet, most struggle to understand exactly why we engage in some environments, and don’t in others. MAGIC introduces the five MAGIC keys of employee engagement—Meaning, Autonomy, Growth, Impact, and Connection—and shows how leaders can help employees achieve higher levels of engagement, as well as how employees can be more successful by taking ownership for their own MAGIC.
The ResearchBased on over 14 million employee survey responses across 70 countries—the most extensive employee engagement survey database of its kind—MAGIC combines principles of psychology and motivation with solid business concepts. Written by internationally recognized experts in leadership and employee engagement, Dr. Tracy Maylett and Dr. Paul Warner, MAGIC provides actionable advice that will reduce employee attrition, encourage initiative, drive growth and profit, and increase personal engagement in one’s work.
Engaging ContentIn this book, leaders and employees will find real-world case studies, exercises, assessments, thought-provoking questions, and suggestions that increase engagement on the individual, manager, and organizational levels.
We Wrote the Book on Employee EngagementMAGIC: Five Keys to Unlock the Power of Employee Engagement
DecisionWise815 West 450 South
Springville, UT 84663 USA
Local 801.515.6500Toll Free 800.830.8086